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2014 (9) TMI 748 - AT - Service TaxImposition of penalty - Whether the appellant herein is correct in claiming that the amount of penalty of 25% of tax liability paid by him is sufficient penalty or not - Held that:- appellant has discharged entire service tax liability and interest thereof prior to issuance of show cause notice. It is also undisputed that appellant had paid 25% of the total tax amount as penalty under the provisions of section 78 of Finance Act, 1994 before expiry of 30 days of the order-in-original - appellant has vehemently urged that under Section 73 read with sub-section (1A) of the Finance Act, once show cause notice has been issued then the assessee is required to make payment of penalty. He has further argued that even before the issuance of show cause notice if the Service Tax and interest has been deposited by the assessee, still he would require to deposit the penalty as he would have known as to what penalty would be levied on the assessee, therefore, at least he should have deposited the 25% of the penalty amount within thirty days. - neither any penalty was levied by the appellant nor any quantum of penalty was fixed. Therefore, the assessee has not committed any illegality in not depositing any penalty amount - penalty levied against the assessee in excess of 25% under Sections 76 and 78 of the Finance Act, 1994, has rightly been set aside by the Tribunal. We do not find any illegality in the order of the Tribunal - Decided against the revenue.
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